R&q Insurance Share Discussion Threads

[jonwig] 19/9/2018 09:52

speeds - gosh, that was just a bit of throwaway musing on my part! Their debt is minimal, anyway.

Didn't they go through a bad patch a few years ago with their US operations? When they made changes to their business model was the start of the current improvement. I don't think their ups and downs are equity-correlated. So "acyclic" might be my answer.

[speedsgh] 19/9/2018 09:16

hi jonwig - RQIH listed in Dec 2007 at 125p and, following a brief initial rise, they entered a downtrend bottoming at c90p in H2 2010. They've had their ups & downs since. Would you regard RQIH as acyclic, cyclic or counter-cyclic? Relatively low beta?

[jonwig] 19/9/2018 07:28

speeds - worth remembering that what they do is probably independent of financial markets' performance. In fact, if companies need cash, they might be more likely to unload legacy captive insurers.

On the other hand, they hold £600m of cash and financial assets. Let's hope not much in shares and long-dated bonds.

[speedsgh] 19/9/2018 07:14

Last year's strategy change appears to have put RQIH in a sweet spot for the time being. Having held since 2011 I am trying to resist the temptation to bank some of the sizeable paper profits!

[jonwig] 19/9/2018 06:59

Interim results:



The show stealer is the potential acquisition - The Board anticipates trading in the second half of 2018 to be strong and, should the acquisition of Global Re US receive regulatory approval and be completed prior to year-end, expects the full year results will be substantially in excess of market expectations.

Even if post-year end, it will only delay the uplift into next year.

Break through 200p?

[speedsgh] 07/9/2018 12:34

jonwig - Thanx for reminder re 2017 offer. I should have remembered seeing as I took my full entitlement at 129p! Interesting times.

[jonwig] 07/9/2018 11:35

I think it's a lot higher than that if you adjust for the 2017 offer, which increased the share capital by 40% - plus the regular payments which a lot of investors will have taken in shares.

[speedsgh] 07/9/2018 11:12

Within sniffing distance of 2013/14 ATH. Intriguing set up with Interims due on 19/9.
Wonder how much further this has to run?

"Analysts at Numis [house broker] are forecasting adjusted pre-tax profits for the year to December 2018 of £19.9m and EPS of 13.4p" TP 195p

[topvest] 04/9/2018 19:36

I do trust management to do the right thing. They do have a significant stake and have run the business very well so far.

[lord gnome] 04/9/2018 13:57

Good points. Let's see what happens. The market seems to like it.

[jonwig] 04/9/2018 07:28

I think their model goes like this: a firm which owns its own insurer ("self-insuring") will need a large amount of regulatory capital compared to the size of the insurer. Selling it to RQIH releases this burden to the firm, and the insurer, now part of a much bigger insurer, needs less capital so a portion can be released to repay RQIH's interim debt. The released capital is essentially shared between the buyer and the seller.

They did suggest it would be "interim debt". If they intended permanently higher gearing I would be concerned.

[lord gnome] 04/9/2018 06:38

I say it is scary, Jonwig. That's a lot of leverage and it could effect dividend growth. Management hubris? We all know what comes next.

[jonwig] 04/9/2018 06:35

Proposed increase of borrowing powers from £100m to £200m:



With MCap of £210m is this a bit scary? Probably not, as they intend acquisitions from which they could "extract cash". This really does sound like the magic money tree.

Last year's interims were on 4 Sept.

[jonwig] 16/8/2018 13:35

@ Red, speeds - yes, I saw the RNS but didn't really grasp how profitable these things would be. We'll just have to wait for their figures and trust them: something which has done well up to now!

H1 results in about 3 weeks. Might get some guidance.

[speedsgh] 16/8/2018 11:24

Chart is in a well-defined uptrend since Q1 2016. Should be challenging previous Q4 2013 ATH before too long.

[speedsgh] 16/8/2018 11:22

And with this still to come...

"Ken Randall, R&Q CEO and Chairman, added: "These three transactions demonstrate R&Q's ability to provide high quality insurance coverage to MGAs throughout the EU. With a strong pipeline of new partnerships, R&Q is on target to exceed its expectations of at least 15 new program partnerships in Europe and the USA in 2018.

To date R&Q Malta and Accredited have contracted live programs expected to produce in excess of US$200m in annual gross premiums and are on track to more than double this figure before year-end."

[red ninja] 16/8/2018 11:15

All sounds positive :-

Randall & Quilter Investment Holdings Ltd. ("R&Q") is pleased to announce that its wholly-owned European subsidiary R&Q Insurance (Malta) Ltd ("R&Q Malta") has signed three new program underwriting partnerships with European Managing General Agents ("MGAs").

[speedsgh] 22/6/2018 11:11

A couple of large trades gone through in the last 24hrs...

21/6 10:02:59 137,288 @ 172.5
22/6 11:13:26 357,913 @ 172.5

[jonwig] 14/6/2018 13:39

Some sellers seem to have noticed this, but the spread is punishing, and so there's no profit.

Anyway, should get my "divi" on the 18th, Monday.

[jonwig] 12/6/2018 13:35

OK, from the RNS dated 17 May:

Shareholders will be issued one Z Share for each Ordinary Share held by them at 6.00 p.m. on 11 June 2018.

On or around 12 June 2018, the Z Shares will be cancelled pursuant to the Reduction of Capital and holders of the Z Shares will be paid the capital paid up on the Z Shares (being 5.4 pence per Z Share).

Payments in respect of the Return of Capital are expected to be made on or around 18 June 2018.
So the first date (11 June) is definite, and they should have gone ex-roc this morning. Would be nice to think I was getting a freebie of 5.4p!

[jonwig] 11/6/2018 19:18

If I've read the dates right,this should go ex-whatever for 5.4p tomorrow with payment around the 18th.

[topvest] 09/5/2018 20:22

Phoenix have a big holding which is encouraging. They must think its worth £2+. Happy to hold as management are very strong.

[lord gnome] 09/5/2018 17:54

All of a sudden, this is starting to look rather good. Onwards and upwards with no sign of stopping yet. Even at these rarefied levels, the yield based on the bid price of 170 is a non-to-shabby 5.2%.

[red ninja] 03/5/2018 21:31

Late surge takes us into the low 160's. I wasn't expecting that

[speedsgh] 30/4/2018 21:55

Seem to remember that Simon Thompson covered RQIH for a while but think he has since moved on to pastures new. RQIH seem to fly under most people's radar which is fine by me.